THE STORY
Reported Haunting
The Blue Lady of Iona-Kane Cemetery in Wyoming is the ethereal ghost of Matilda Waters, who reportedly paces the historic, partially submerged grounds searching for her deceased children. Legend states she lures visitors in with a beautiful, glowing blue presence, only for them to discover a cruel and distorted expression upon getting closer. Local lore frequently connects her restless spirit to a tragic 1921 family murder-suicide that shook the former boomtown.
Kane is a sort of ghost town about 10 miles west of Lovell. It has no residents, but a few building foundations remain. When the Yellowtail Reservoir water level is low, the old town’s remains and the historic cemetery can be seen. The Blue Lady who haunts this cemetery is a glowing specter who is said to look beautiful from far away but ugly close up. According to local legend, she had an abusive husband who was the cause of her children drowning. Her ghost lingers in search of her children.